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L Brands Reports Flat Comps in Q4, Sales Miss Estimates
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L Brands, Inc. reported flat comparable sales for fourth-quarter fiscal 2016. However, net sales for the quarter increased 2% to $4.489 billion but fell short of the Zacks Consensus Estimate of $4.519 billion.
The company, which is scheduled to release its fourth-quarter fiscal 2016 results on Feb 23, expects earnings per share to be approximately $1.90 per share in comparison with its prior guidance for the low end of its initial projection of $1.85 to $2.00 per share. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $1.87.
We noted that the company’s comparable store sales (comps) for the four weeks ended Jan 28, 2017 decreased 4%, following a decline of 1% in December and an increase of 4% in November.
The company’s decision to exit from swim and apparel categories hurt the comps by 5 basis points due to. Moreover, net sales for January declined 1% to $805.2 million.
L Brands’ comps (Stores and Direct) declined 10% at Victoria’s Secret but increased 12% at Bath & Body Works. Moreover, comps (stores only) fell 4% Victoria’s Secret but rose 11% at Bath & Body Works. While, for the year ended Jan 28, 2017, net sales grew 3% to $12.574 billion from $12.154 billion in the prior-year period. Comps gained 2% over the same period.
L Brands also announced new share repurchase program wherein the company will buyback shares worth $250 million, which also includes $62 million remaining under prior program. In 2016, the company repurchased shares worth $438 million.
L Brands has exhibited a bearish run in the past one year plunging roughly 33.1% compared with the Zacks categorized Retail-Apparel/Shoe industry that declined 15.2%. The competitive retail landscape and short-term challenges, tough macro-economic conditions and expected sluggishness at Victoria's Secret brand are likely to hamper the company’s near-term performance.
The Zacks Rank #3 (Hold) company commands a market leading position in the lingerie, personal care and beauty segments. We believe that the company’s innovation in merchandise and exclusive assortments remain popular among consumers and sets it apart from its peers. Moreover, L Brands with its operational efficiencies, new and innovative assortments remains well positioned to capitalize on the same.
Apart from L Brands, Costco Wholesale Corporation (COST - Free Report) and Zumiez Inc. (ZUMZ - Free Report) came out with their comps results. Both Costco Wholesale and Zumiez registered an increase of 7% and 9.4%, respectively for the month of January.
Stock to Consider
A better-ranked stock worth considering in the retail sector is Big 5 Sporting Goods Corporation (BGFV - Free Report) , which sports a Zacks Rank #1 (Strong Buy). L Brands currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Big 5 Sporting Goods delivered an average positive earnings surprise of 4.8% in the trailing four quarters and has a long-term earnings growth rate of 12%.
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Today, you are invited to download the full list of 220 Zacks Rank #1 """"Strong Buy"""" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 """"Strong Sells"""" and other private research. See these stocks free >>
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L Brands Reports Flat Comps in Q4, Sales Miss Estimates
L Brands, Inc. reported flat comparable sales for fourth-quarter fiscal 2016. However, net sales for the quarter increased 2% to $4.489 billion but fell short of the Zacks Consensus Estimate of $4.519 billion.
The company, which is scheduled to release its fourth-quarter fiscal 2016 results on Feb 23, expects earnings per share to be approximately $1.90 per share in comparison with its prior guidance for the low end of its initial projection of $1.85 to $2.00 per share. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $1.87.
We noted that the company’s comparable store sales (comps) for the four weeks ended Jan 28, 2017 decreased 4%, following a decline of 1% in December and an increase of 4% in November.
The company’s decision to exit from swim and apparel categories hurt the comps by 5 basis points due to. Moreover, net sales for January declined 1% to $805.2 million.
L Brands’ comps (Stores and Direct) declined 10% at Victoria’s Secret but increased 12% at Bath & Body Works. Moreover, comps (stores only) fell 4% Victoria’s Secret but rose 11% at Bath & Body Works. While, for the year ended Jan 28, 2017, net sales grew 3% to $12.574 billion from $12.154 billion in the prior-year period. Comps gained 2% over the same period.
L Brands also announced new share repurchase program wherein the company will buyback shares worth $250 million, which also includes $62 million remaining under prior program. In 2016, the company repurchased shares worth $438 million.
L Brands has exhibited a bearish run in the past one year plunging roughly 33.1% compared with the Zacks categorized Retail-Apparel/Shoe industry that declined 15.2%. The competitive retail landscape and short-term challenges, tough macro-economic conditions and expected sluggishness at Victoria's Secret brand are likely to hamper the company’s near-term performance.
The Zacks Rank #3 (Hold) company commands a market leading position in the lingerie, personal care and beauty segments. We believe that the company’s innovation in merchandise and exclusive assortments remain popular among consumers and sets it apart from its peers. Moreover, L Brands with its operational efficiencies, new and innovative assortments remains well positioned to capitalize on the same.
Apart from L Brands, Costco Wholesale Corporation (COST - Free Report) and Zumiez Inc. (ZUMZ - Free Report) came out with their comps results. Both Costco Wholesale and Zumiez registered an increase of 7% and 9.4%, respectively for the month of January.
Stock to Consider
A better-ranked stock worth considering in the retail sector is Big 5 Sporting Goods Corporation (BGFV - Free Report) , which sports a Zacks Rank #1 (Strong Buy). L Brands currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Big 5 Sporting Goods delivered an average positive earnings surprise of 4.8% in the trailing four quarters and has a long-term earnings growth rate of 12%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 """"Strong Buy"""" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 """"Strong Sells"""" and other private research. See these stocks free >>